Federal Employee Retirement System(FERS)

[JoeW]

Client received $21,000 lump sum payment for catchup payment from 05/04 thru 05/08. He is now receiving monthly payments based on expectancy table. He would like to rollover the taxable portion of the 21,000. Can he do this? I check pub 721 and I am this uncertain.
I believe he can since it was a lump sum payment.

[Burke]

You say "catch-up payments" over 4 yrs. Why were they catch-up payments? If they were not eligible in those years for rollover because of the nature of the payment (i.e, annuity payments over a life expectancy or fixed period of 10 yrs or more), they would not be eligible now just because he received them all in one year. See page 14 of Pub 721.

[Redneck]

Fers

All pension income received from FERS is taxable in the year received.